Developing Partnerships with the MWBE Community

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Developing Partnerships with the M/WBE Community
Guilford County Schools
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State of North Carolina
143-128.2.  Minority business participation
goals. (a)       The State shall have a
verifiable ten percent (10) goal for
participation by minority businesses in the total
value of work for each State building projectA
local government unit or other public or private
entity that receives State appropriations for a
building project or other State grant funds for a
building project, including a building project
done by a private entity on a facility to be
leased or purchased by the local government unit,
where the project cost is one hundred thousand
dollars (100,000) or more, shall have a
verifiable ten percent (10) goal for
participation by minority businesses in the total
value of the work provided, however, a local
government unit may apply a different verifiable
goal that was adopted prior to December 1, 2001,
if the local government unit had and continues to
have a sufficiently strong basis in evidence to
justify the use of that goal Except as otherwise
provided for in this subsection, each city,
county, or other local public entity shall adopt,
after a notice and public hearing, an appropriate
verifiable percentage goal for participation by
minority businesses in the total value of work
for building projects. Each entity required to
have verifiable percentage goals under this
subsection shall make a good faith effort to
recruit minority participation in accordance with
this section or G.S. 143-131(b), as applicable.
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State of North Carolina

• 143-128.2 (g)
• As used in this section
• (1)       The term "minority business" means a
  business
• a.         In which at least fifty-one percent
  (51) is owned by one or more minority persons or
  socially and economically disadvantaged
  individuals, or in the case of a corporation, in
  which at least fifty-one percent (51) of the
  stock is owned by one or more minority persons or
  socially and economically disadvantaged
  individuals and
• b.         Of which the management and daily
  business operations are controlled by one or more
  of the minority persons or socially and
  economically disadvantaged individuals who own
  it.
• (2)       The term "minority person" means a
  person who is a citizen or lawful permanent
  resident of the United States and who is
• a.         Black, that is, a person having
  origins in any of the black racial groups in
  Africa
• b.         Hispanic, that is, a person of Spanish
  or Portuguese culture with origins in Mexico,
  South or Central America, or the Caribbean
  Islands, regardless of race
• c.         Asian American, that is, a person
  having origins in any of the original peoples of
  the Far East, Southeast Asia and Asia, the Indian
  subcontinent, or the Pacific Islands
• d.         American Indian, that is, a person
  having origins in any of the original Indian
  peoples of North America or
• e.         Female.
• (3)       The term "socially and economically
  disadvantaged individual" means the same as
  defined in 15 U.S.C. 637.

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GCS BOE Policy- 2000 2003 Bonds

• BOE policy DK- Participation by
• Women and Minority Owned Businesses
• 10 good faith effort approved by the BOE in
  December 1994 which was later reaffirmed on June
  11, 1996.

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GCS 2000 2003 Bonds

• WBE 7.14
• MBE 4.13
• TOTAL M/WBE 11.27
• GCS exceeded the BOE 10 M/WBE Goal for the 2000
  and 2003 Bonds combined.

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State Disparity Study-Dec./2003
North Carolina Department of Administration
conducted a Disparity Study in December 30, 2003
with the following results for M/WBE capacity for
the region including Guilford County WBE
7.01 MBE 5.45 TOTAL M/WBE 12.46
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GCS M/WBE Policy Revised

• On March 29, 2007 the BOE revised and adopted
  policy DK, Participation by Women and Minority
  Owned Businesses. This policy reads in part
• In accordance with N.C.G.S. 143-128.2, the board
  adopts a verifiable goal of 12.46 for
  participation by Minority, Women, and Socially
  and Economically Disadvantaged Owned Business
  Enterprises (M/WSEDBE) in construction projects
  in excess of 100,000 or more.
• This policy revision replaced the 10 good faith
  effort.

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Latest Results

• Eastern Guilford High School (Barnhill
  Contracting)
• The Districts first Construction Manager at Risk
  project has had notable success in meeting and
  exceeding the Districts M/WBE Goal of 12.46.
• Out of the 34,345,109 contract value billed
  through March, 2008 in construction and contracts
  awarded by the District the M/WBE participation
  rates are approximately as follows
• MBE 8.61
• WBE 19.49
• M/WBE Participation 28.10
• This exceeds the BOE M/WBE goal by more than
  100!

Total M/WBE participation is trending upward in
the four month look ahead for expected billings!
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Latest Results
Dean B Pruette SCALES Project (New Atlantic
Contracting)

• On April 16 and April 17, the project was bid
  under the Construction Manager at Risk project
  delivery method. 
• Based on a preliminary Guaranteed Maximum Price
  (GMP) of 2,700,000 in construction and contracts
  to be awarded by the District the M/WBE
  participation rates are approximately as follows
• MBE 20.7
• WBE 6.6
• M/WBE Participation 27.3
• This exceeds the BOE M/WBE goal by more than
  200!

Although these percentages are preliminary, the
construction team is confident they will hold and
is still working to improve upon them. 
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Latest Results
Union Hill Project (Samet/SRS)

• On April 22 and April 24, the project was bid
  under the Construction Manager at Risk project
  delivery method. 
• Based on a preliminary Guaranteed Maximum Price
  (GMP) of 14,455,872 in construction and
  contracts to be awarded by the District the M/WBE
  participation rates are approximately as follows
• MBE 8.26
• WBE 23.47
• M/WBE Participation 31.74
• This exceeds the BOE M/WBE goal by more than
  250!

These percentages are preliminary. Contractor is
currently in the process of conducting pre-award
meetings with apparent low bidders.
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Going Forward

• Some of the actions being taken by the District
  and its contractors to maximize M/WBE
  participation include
• HUB Advisory Committee- BOE working to get 11
  member committee to oversee HUB program
• GCS M/WBE Coordinator- Todd Baldwin hired October
  2007 after interviewing over 20 candidates.
• Unbundling packages to get smaller contracts
• Implemented quick pay to help cash flow
• Encouraging general contractors to make lower
  materials prices available to MWBE contractors
• Facilities Management Team committed to M/WBE
  Participation

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Going Forward

• Union Hill Project (Samet/SRS)
• Personal one on one meetings with interested
  M/WBE Firms by contractors to discuss project
  opportunities and requirements. 
• Personal and specific Approval/Disapproval
  letters to each prospective bidder seeking
  prequalification.
•  Attendance at United Minority Contractors of NC
  to discuss project to groups.  Many firms and
  Owner M/WBE coordinators from various
  universities and school districts were present
  and were interested in helping to spread the word
  to those they felt were qualified and would
  benefit from the opportunity. 
• Attended the 2008 State Construction Conference
  and HUB Mixer to distribute information about the
  project to firms and Owner M/WBE coordinators
  that would help in getting the word out.
• Sponsored and presented the project at (2) HUB
  Academy Classes at Winston-Salem State
  University.  Also attended the WSSU HUB Academy
  Graduation on April 2, 2008.    

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Going Forward

• Union Hill-Continued
• Presented project information at the HUB II
  Academy at NCSU which was attended by a member of
  the SSJV project team.  
• Cross referenced the project data base of
  available M/WBE firms with many state data bases
  throughout the prequalification process.
• Assisted experienced firms who were not yet
  bonded to seriously seek bonding as another step
  to increasing capacity.
• Research and investigate the HUB market
• Active recruitment and prequalification
• Pre-Construction phase contractors college and
  technical assistance
• Financial and bonding assistance
• Second tier strategy

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Going Forward

• Dean B Pruette SCALES Project (New Atlantic)
• Advertise in local newspapers(including minority
  owned publications)
• Conduct mixers to open dialogue among prospective
  contractors
• Facilitate meetings between majority and
  minority firms to foster mentor protégé
  relationships
• Develop Reduced Barrier Bid Packages(RBBP) to
  increase economic feasibility Value of RBBPs is
  equal to 31 of project total
• Provide majority contractors with minority
  contractor information for packages outside of
  RBBPs for inclusion as suppliers and subs
• Assist in the identification and obtainment of
  alternative bonding and insurance to meet bid
  requirements for all size packages
• Identify prospective contractors via North
  Carolina DOA Office of Historically Underutilized
  Businesses, GCS M/WBE contractors list, National
  Association of Minority Contractors, New
  Atlantics subcontractor list, local
  municipalities M/WBE vendor lists

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M/WBE Participation

• GCS has made considerable progress in the area of
  M/WBE participation.
• We also know that there is always room for
  improvement and we will continue to work with our
  M/WBE partners.
• Together we can achieve more.

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GCS and M/WBE Firms- Building the Future
Together.
Guilford County Schools